Obama Seeks $10-Per-Barrel Oil Tax to Fund Self-Driving Cars

For the upcoming 2017 fiscal budget, President Barack Obama has proposed a $10-per-barrel tax on oil to fund autonomous cars and improve traffic. If the proposal passes, the oil tax would be phased in over the next 5 years.

The plan allots just over $2 billion per year for research on clean transportation and autonomous vehicles. A cool $400 million per year will go toward ensuring the safe integration of smart vehicle technologies. The Obama administration recently pushed through an initiative to help accelerate self-driving car development.

The President also wants to spend an extra $20 billion a year above current levels to reduce traffic, a plan that includes making a high-speed rail system a viable alternative to flying. An extra $10 billion will go toward local programs. As part of this plan, state governments will receive incentives for reducing carbon pollution through methods like better land use planning.

The Obama administration says the $10-per-barrel fee would be paid by oil companies, but the costs would undoubtedly get passed on to consumers. Considering Republicans control both the Senate and House of Representatives, the proposal will have a very difficult time becoming law.

Obama has previously made bold proposals for the deployment of clean vehicles. In 2008, he declared a goal of putting 1 million plug-in electric cars on the road by 2015. That plan faltered; only 400,000 EVs have been sold, reports Reuters.

Source: The White House, Automotive News (Subscription required), Reuters

The post Obama Seeks $10-Per-Barrel Oil Tax to Fund Self-Driving Cars appeared first on Motor Trend.

from Motor Trend http://ift.tt/1K3cd1b